13.06.2025 11:11

Following reports of Israeli airstrikes on Iran, the cryptocurrency market experienced a significant sell-off, resulting in substantial losses across major digital assets. This sharp downturn, triggered by heightened geopolitical uncertainty, saw hundreds of millions of dollars in long positions liquidated. The unexpected event created a dramatic shift in market sentiment, highlighting the vulnerability of cryptocurrencies to external factors.

Bitcoin, having recently approached record highs near $111,000, plummeted over 2.8% within just two hours, falling from $106,042 to $103,053 before recovering slightly to around $104,370. This rapid decline, according to CoinMarketCap data, coincided with the liquidation of nearly $428 million in long Bitcoin positions within 24 hours, as reported by CoinGlass. The sudden market correction caught many investors off guard, wiping out significant profits in a short period.

Ethereum and XRP also suffered substantial losses during this period. XRP futures, for instance, saw $7.63 million in long liquidations despite some positive news, experiencing a dramatic price drop of over 5%. The overall market reaction reflects a classic "flight to safety," as investors sought refuge in traditional assets such as crude oil, which saw a notable 11% surge, while simultaneously reducing their exposure to riskier digital assets. Gold also showed a positive increase of 1.44%.

Despite the initial downturn, some analysts believe this divergence between cryptocurrencies and traditional safe havens may prove temporary. Anthony Pompliano, a well-known entrepreneur and Bitcoin bull, drew parallels to a similar situation following Iran's October rocket attacks on Israel. He noted that while Bitcoin initially declined then, it ultimately outperformed both gold and oil within 48 hours, suggesting a potential for a similar rebound in the current situation. The coming days will reveal whether this prediction holds true.